HC Deb 08 July 1997 vol 297 c448W
Mr. Yeo

To ask the Secretary of State for the Environment, Transport and the Regions (1) what assessment his Department has made of the reduction in the income of occupational pension funds administered on behalf of local authority employees from the abolition of payable tax credits; [7338]

(2) what assessment his Department has made of the cost of local authorities of the increase in pension contributions following the abolition of payable tax credits. [7339]

Ms Armstrong

An assessment of the abolition of tax credits on the income flow of local authority pension funds will in the first instance be a matter for each of the funds to consider, in discussion with their actuaries, investment managers and other advisers. The findings can then be built into the 1998 valuation of the funds and used to inform decisions on employers" future contribution rates with effect from the financial year 1999–2000.

Mr. Yeo

To ask the Secretary of State for the Environment, Transport and the Regions what was the value of the tax credits available on occupational pension schemes for local authority employees during the last financial year. [7337]

Ms Armstrong

The information requested is not collected in such a way that is readily identifiable to individual pension schemes.

Mr. Yeo

To ask the Secretary of State for the Environment, Transport and the Regions what consultations he has had with the Local Government Association about the effect on occupational pension schemes of the abolition of payable tax credits.

Ms Armstrong

Liaison between my Department, the Local Government Association and the United Kingdom Steering Committee on local authority pensions continues on a regular basis on these matters.

Mr. Yeo

To ask the Secretary of State for the Environment, Transport and the Regions what assessment his Department has made of the impact on council tax bands of the abolition of payable tax credits. [7336]

Ms Armstrong

None. The council tax is based on a system of banded valuations according to the open market value of properties on 1 April 1991 and these valuations will be unaffected by the abolition of payable tax credits.